Emerald | Multinational Business Review | Table of Contents

Regionalization strategy and performance: The moderating role of industry dynamism and top management team diversity

Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT). Design/methodology/approach – This analysis is based on a cross-sectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005. Findings – Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and inter-regional TMT diversity. Originality/value – The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.

Technology and international orientation: sectoral differences in home-region orientation

literatinetwork@emeraldinsight.com (Louise Curran, Michael Thorpe) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The aim of this paper is to shed light on recent debates in this journal on differences in home-region orientation depending on type of company and the home region in which they are based. Design/methodology/approach – The paper looks at the structure of trade (imports and exports) across different types of goods in order to shed light on differences between sectors and types of technology. The paper also explores structures across regions in order to shed light on regional differences. Findings – This research indicates that there are major differences in structures of trade between different types of goods. However, these differences do not necessarily conform to a clear pattern across different technological levels and differ between regions and the direction of trade. The fact that Asian cultures have greater psychic distance from European and North American cultures is not reflected in higher levels of home-region orientation. Research limitations/implications – The paper helps to clarify some of the hypotheses on home-region orientation recently identified in this journal and, thus, helps to advance theories about why this orientation is so prevalent. The main limitations are related to the methodology. Using trade data, the paper cannot define the boundaries of the firm and, therefore, can only make conclusions at the macro level. These conclusions can, nevertheless, help to orient work at the micro level to further explore the key questions which recent work has raised. Originality/value – Limited comparative work across sectors or technologies has been undertaken in the context of the debate on home-region orientation. Differentiating between different types of goods can help to give us insights into why so many companies tend to focus so consistently on their home region, while others are more global.

Dissecting home regionalization: how large does the region loom?

literatinetwork@emeraldinsight.com (Andre Sammartino, Thomas Osegowitsch) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The paper aims to motivate more rigorous theoretical and empirical specification of the home regionalization phenomenon, in particular the dynamics of shifting advantage over time within a multinational enterprise. It aims to improve dialogue among regionalization researchers. Design/methodology/approach – Contrasting the economizing and behavioral perspectives on internationalization, the paper presents five different archetypes of the home-regionalization phenomenon. These archetypes are predicated on strategic management stylizations of competitive advantage. Findings – The paper demonstrates that the notion of home regionalization as a dominant and superior model for firm internationalization remains a promising yet under-explained and inconsistently articulated thesis. By introducing and exploring the archetypes, it shows the diversity of home-regionalization theses, and the prospect that multiple forms of regionalization may be at play for different firms, industries and locations. Originality/value – The paper presents the full complement of archetypes of the home-regionalization phenomenon and explores their corresponding assumptions. These explorations open up new empirical and theoretical research avenues for distinguishing any genuine region effects.

Chinese multinationals in Denmark: Testing the eclectic framework and internalization theory

Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to explain in detail the strategic asset-seeking OFDIs of Chinese firms in Denmark through a theoretical lens that combines the updated OLI (Ownership, Location, Internalization) paradigm and the internalization theory. Meanwhile, the authors hope to unveil the unique characteristics of firm specific advantages (FSAs, including O and I advantages) and country specific advantages (CSAs, including L advantages). Design/methodology/approach – The authors chose two case firms that just started investing and a third one that was in the process of preparing investment in Denmark. Primary data were collected by semi-structured interviews in English at various locations in late 2009 and early 2010. The three Chinese firms in this study share a common primary objective in their strategic orientation of OFDIs. That is to seek strategic assets that are complementary and critical to augment their existing FSAs. Findings – Rugman stated that strategic asset-seeking OFDIs are supposed to have high levels of FSAs and CSAs. This study presents a more detailed analysis regarding the O, L and I advantages that Chinese investing firms in Denmark are perceived to possess. It was found that these Chinese investing firms had high levels of Oa and Oi but Ot was largely absent; furthermore, although Lr was obviously appreciated in Denmark, Li presented a mixed picture. The paper also found that internalization advantages were only able to be realized when investing firms were good at utilizing networking and guanxi, which were largely derived from their prior Oi advantages. Originality/value – Few have analyzed strategic asset-seeking OFDIs made by emerging markets based on the FSA/CSA matrix that combines the OLI paradigm and the internalization theory. This study pursued this research endeavor by enriching a refined framework that connects the OLI paradigm, which recognizes multiple dimensions of O advantages and an institutional perspective, to the internalization theory, which converts O and I advantages into FSAs and associates L advantages with CSAs.

Internationalization and environmental disclosure: the role of home and host institutions

literatinetwork@emeraldinsight.com (Ans Kolk, Fabienne Fortanier) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The domestic institutional context has emerged as a key determinant of firms' environmental disclosure, but studies have hardly addressed the extent to which exposure to foreign institutional contexts plays a role in the occurrence and contents of non-financial disclosure, which are crucial aspects for understanding multinationals' accountability. The aim of this paper is to investigate the relationship between internationalization (both degree and spread) and environmental disclosure. Design/methodology/approach – It is hypothesized that both home and host country institutional pressures affect the relationship between internationalization and environmental disclosure, and that these effects are more prominent in environmentally-sensitive sectors. The proposed relationships are tested using data from the Fortune Global 250. Findings – Results show a significantly negative relationship between the degree of internationalization and environmental disclosure, which is only partly mitigated by environmental governance and institutional quality in home and host countries. The relationship is only positive for firms in high-sensitivity sectors from high-standard countries. Findings are particularly strong for the degree of internationalization; and non-significant for dispersion/spread. Originality/value – This article moves beyond the predominant focus on country-of-origin effects by adding exposure to foreign institutional contexts, for which it develops a new indicator. It renews attention to non-financial disclosure, a topic underexposed in the IB literature. Viewed from a broader IB perspective, this article provides an empirical illustration of the effect of home and host institutions on firm strategy, and of the use of different metrics to assess internationalization with divergent results for degree versus spread, as well as for sales versus assets, pointing to areas for further research.

Testing home regionalization

literatinetwork@emeraldinsight.com (Alan M. Rugman) — Fri, 12 Apr 2013 00:00:00 +0100

2012 Awards for Excellence

Fri, 12 Apr 2013 00:00:00 +0100